Mark Gritter (markgritter) wrote,
Mark Gritter

Falling interest rates

In December I finally finished building a 12-month CD ladder at ING Direct.

The first batch, started in July, offered interest rates of 5.15, 5.25, and 5.35%.
The second batch, in August, were at 5.15%.
September's batch of three got 4.90%.
October, November, and December interest rates for a 1-year certificate of deposit were 4.90%, 4.70%, and 4.70% respectively.

This January, I signed up to automatically roll over the first CD, for a 0.10% bonus over whatever the rate was on the day the old CD matured. A few weeks ago this would have been about 4.35%. Today was the rollover and it's 3.75%.

3.65% is the rate being advertised for the savings account as well... yup, no premium for a new CD over savings. Guess which direction they think interest rates are going?

I think next month I will have to shop around, bankrate is showing much better rates elsewhere at the amount we're investing.
Tags: finance
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